Research On The Recognition And Measurement Of Goodwill In M&A

With the frequent occurrence of M&A activities in recent years,more and more enterprises confirm the goodwill.As an unrecognized asset,goodwill accounts for more and more of the total assets of the enterprise.Therefore,how to accurately recognize and measure this asset is very important for the enterprise to truly reflect the situation of the enterprise to the statement users.According to China's accounting standards,only the goodwill formed by business combination under different control can be recognized.However,in practice,there is still a big controversy on the recognition and measurement of goodwill because goodwill is an asset that cannot be identified.Therefore,the academic community is still actively exploring the choice of goodwill recognition and measurement methods.This dissertation studies the recognition and measurement of Goodwill Based on the merger of humanwell pharmaceutical and epic Pharma Company in the United States,analyzes the shortcomings and causes of the current accounting treatment of goodwill in China,and puts forward relevant suggestions combined with the deficiencies.This dissertation is divided into the following seven parts:the first part is a brief overview of the background,significance,research methods,ideas,etc.of the topic,and the collation of the relevant literature at home and abroad,to lay a good foundation for the research direction of this dissertation;the second part mainly introduces the basic concepts and theoretical basis of goodwill,which is the theoretical basis of this dissertation;the third part is the human welfare medicine Pharmaceutical acquisition of American Epic The case of pharma company is reviewed.It briefly introduces the situation of both sides of M&A,and expounds the background,motivation,specific scheme and final effect of M&A.the fourth part analyzes and compares the initial recognition,measurement and follow-up measurement of M&A goodwill of the case company based on the specific cases selected in this dissertation,and puts forward the reasonable follow-up measurement in this dissertation The fifth part analyzes the problems and reasons of the confirmation and measurement of the case company's M&A goodwill.The main problems are as follows:firstly,the fair value of the identifiable net assets of the merged enterprise is difficult to confirm;secondly,the cost of the merger is uncertain;thirdly,the merging party is easy to beautify the future development of the merged party;Fourthly,The subjectivity of the impairment test of M&A goodwill is strong.The fifth is that there is a lag in the impairment test of goodwill.In view of the problems existing in the above-mentioned accounting treatment of goodwill,this dissertation analyzes the causes of the problems in the fifth part:firstly,the fair value of identifiable net assets and merger cost are affected by many factors;secondly,the relevant accounting standards are not perfect;thirdly,the subsequent measurement of goodwill is one of the means of profit manipulation of enterprises;The sixth part puts forward relevant suggestions for the above problems Suggestions are put forward from the following aspects:the relevant departments should improve the relevant standards,strengthen the supervision,strengthen the responsibilities of relevant staff,and optimize the methods of subsequent measurement of goodwill.Finally,the results of the case analysis are summarized,the relevant conclusions are drawn and the future research of goodwill is prospected.